(Reuters) -Albemarle, the world’s largest producer of lithium, swung to a quarterly profit as cost cuts helped offset low prices of the electric vehicle battery metal, but adjusted results reported on Wednesday fell short of analysts’ expectations.
Shares of the Charlotte, North Carolina-based company rose 2.5% to $78.50 in after-hours trading.
Albemarle, like many of its peers, has struggled over the past 18 months to weather a lithium supply glut brought on in part by overproduction in China.
As a result, Albemarle executives last year said they would cull staff and cancel expansion projects – including a key U.S. lithium refinery – in a plan to save hundreds of millions of dollars and protect the company’s balance sheet and operations across the Americas, Asia and Australia.
For 2025, Albemarle now plans to spend $700 million to $800 million, roughly half of last year’s capital budget.
“We are taking decisive actions to reduce costs, optimize our conversion network and increase efficiencies to preserve our long-term competitive position,” CEO Kent Masters said in a press release.
The company posted a fourth-quarter profit of $33.6 million, or 29 cents per share, compared to a loss of $617.7 million, or $5.26 per share, in the year-ago period.
Excluding one-time items, such as restructuring costs related to the layoffs, Albemarle lost $1.09 per share. By that measure, analysts expected a loss of 70 cents per share, according to LSEG data.
The company’s Energy Storage division, which sells lithium, reported a $1.1 billion drop in revenue caused by a 53% slide in prices the company receives for its lithium.
Albemarle plans to discuss the quarterly results on a Thursday morning conference call.
(Reporting by Ernest Scheyder; Editing by Chris Reese and Bill Berkrot)
